Sri Lanka selling it’s gold reserves to avoid bankruptcy

Colombo, 19/1: India’s neighboring country Sri Lanka Economic Crisis has started selling gold to avoid going bankrupt. By doing this, this country is trying to support its economy. According to the central bank of Sri Lanka, it has sold a part of its gold reserve to save the depleting foreign exchange reserves. Sri Lanka’s leading economist and former Deputy Governor of the Central Bank, Dr. W. A Vijewardene has said that the gold reserve of the central bank has decreased.


Dr. W. A Wijewardene wrote in a tweet that the Central Bank’s gold reserve has come down from $382 million to $175 million. At the same time, Sri Lanka’s central bank governor Nivard Cabral also said that the country has sold a part of its gold reserves to increase liquid foreign assets.


Sri Lanka’s central bank increased its gold reserves at the end of the year after a currency swap with China. According to a report, it is estimated that the central bank of Sri Lanka had reserves of 6.69 tonnes of gold at the beginning of 2021. After this, now about 3.6 tonnes of gold has been sold. Due to this, only 3.0 to 3.1 tonnes of gold remained with this country.

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